ITAT upheld addition under section 68 regarding unexplained cash ...

Section 68 Addition Upheld: Rs 78 Lakh Cash Deposits Unexplained, Presumptive Tax Relief Denied Due to High Turnover

February 14, 2025

Case Laws Income Tax AT

ITAT upheld addition under section 68 regarding unexplained cash deposits of Rs. 78,00,000/- as assessee failed to provide satisfactory explanation or supporting documentation despite opportunities from AO and CIT(A). Assessee's alternative plea to apply 8% presumptive taxation under section 44AD was rejected as turnover exceeded eligible threshold of Rs. 60 lakh. However, ITAT deleted AO's addition of 8% presumptive tax on remaining turnover of Rs. 28,14,676/-, accepting explanation that deposits originated from assessee's business profits and father's savings/business accruals. Tribunal found father's business history with turnover between Rs. 51-62 lakh made explanation plausible. Appeal partially allowed with respect to smaller cash deposits while maintaining primary addition under section 68.

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ITAT upheld addition under section 68 regarding unexplained cash ...

Section 68 Addition Upheld: Rs 78 Lakh Cash Deposits Unexplained, Presumptive Tax Relief Denied Due to High Turnover

February 14, 2025

Case Laws Income Tax AT

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